Capital Goods Stocks Outlook
Stock-specific reactions likely on Q1 results
This story was originally published at 20:29 IST on 10 July 2026
Register to read our real-time news.Informist, Friday, Jul. 10, 2026
MUMBAI – Stock-specific reactions are likely for capital goods companies as several major earnings are scheduled for next week. Overall, the BSE Capital Goods index is expected to move in a range as stocks have already run up in hope of strong demand.
Bharat Heavy Electricals Ltd. and Polycab India Ltd. are scheduled to report their earnings on Thursday and Havells India Ltd. will report its results on Friday. Analysts are mixed about BHEL, with three analysts predicting a net profit of INR 457 million-INR 3.7 billion, while one analyst expects the company to report a net loss of INR 4.21 billion. Its bottom line may take a hit due to weak execution, Kotak Securities said in its quarterly report.
Cable and wire companies are expected to report a strong quarter with Polycab's net profit likely to rise 19% on year during the June quarter, and the net profit of Havells seen 15% higher, according to estimates by 11 brokerages. "(For cables and wires) demand is supported by multiple structural growth drivers, including power transmission and distribution, residential and commercial construction, railways, telecommunications, renewable energy, and industrial capex," Motilal Oswal Financial Services said.
While revenue growth is seen strong, capital goods companies' profitability is likely to be under pressure due to a sharp rise in input costs after the US-Iran war pushed prices of commodities higher. Further, high valuations across segments--especially defence, and transmission and distribution sector--may push investors to book profits, analysts said.
"While the sector's (transmission and distribution) structural outlook stays attractive, demand–supply gap that underpinned premium pricing—is likely to narrow as incumbents expand capacity, new domestic players enter and Chinese participation potentially rises. This could gradually weigh on pricing, margin while valuations of HVTD names (GVTD, Hitachi Energy India) leave little cushion versus any moderation in ordering/ profitability," Nuvama Wealth Management Ltd. said in an earnings preview.
TOP HEADLINES
* Elecon Engg Apr-Jun consol net profit falls 59.9% YoY to INR 703.5 million
* Samvardhana Motherson to give corporate guarantee for euro 60-mln loan to arm
* Varroc Engg to invest INR 4.87 mln in two SPVs for renewable power plants
* L&T's AI cloud ops partner with Fortanix for software-as-a-service products
* BHEL, thyssenkrupp nucera India ink pact for alkaline electrolyser system
* Moody's assigns 'Baa1' long-term issuer rating to L&T with 'stable' outlook
* Texmaco Rail bags order worth INR 707 mln for railway wagons, brake van
* RITES gets $35 mln order from South African company to supply locomotives
* CARE assigns 'AAA' to RITES' long-term non-fund-based bank facilities
* Samvardhana Motherson issues 200-mln-euro corporate guarantee for arm
* India Ratings ups Kalpataru Projects long-term debt to AA+ from AA
* KEC International extends $35 mln corporate guarantee for arm
* Schaeffler India's mfg plants get Bureau of Indian Standards licence
Following are the resistance and support levels for key capital goods stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % |
Resistance | Support |
| Bharat Heavy Electricals | 395.25 | 3.00 | 402.40 | 382.00 |
| CG Power and Industrial Solutions | 916.60 | 2.70 | 928.10 | 907.80 |
| Larsen & Toubro | 3,945.80 | (-)2.00 | 3,983.70 | 3,886.10 |
| Siemens | 3,496.50 | (-)1.10 | 3,564.20 | 3,452.20 |
| Thermax | 4,809.00 | 4.40 | 4,917.70 | 4,693.70 |
| Bharat Electronics | 414.85 | (-)0.80 | 420.10 | 405.60 |
| Index | Levels | |||
| S&P BSE Capital Goods | 79102.08 | 0.50 | 79734.80 | 78074.40 |
| Nifty 50 | 24206.90 | (-)0.30 | 24293.30 | 24077.10 |
| S&P BSE Sensex | 77569.39 | (-)0.30 | 77832.40 | 77189.10 |
End
Reported by Anshul Choudhary
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
